SPRINGFIELD, Mo. — Although the public isn’t generally told we are in a recession until about a year after it happens, many people are struggling under the pressure of rising costs.

Financial professional Brad Pistole from Trinity Insurance & Financial Services explains what is happening in the economy and offers tips to prepare for a possible economic downturn.

THE ECONOMY IS FULL OF MIXED SIGNALS, BUT ARE WE OFFICIALLY IN A RECESSION? 

“One traditional definition of a recession is two consecutive quarters of negative GDP growth, which has already happened,” said Pistole. “But the National Bureau of Economic Research’s Business Cycle Dating Committee declares an official recession, and they use a variety of factors in addition to GDP data.”

Here are the signs that we’re seeing that signal an impending recession:

  • Inverted yield curve.
  • High inflation.
  • Aggressive interest rate hikes.
  • Increasing unemployment.
  • Slowing housing market.

Here are the signs that may mean we’ll avoid a recession, for now: 

  • Inflation is slowing.
  • Job market is strong.
  • Wages and benefits are increasing.
  • Consumer spending is high.

Here’s what we can do to prepare: 

  • Create an emergency fund.
  • Focus on eliminating debt.
  • Stay in the market.
  • Reevaluate your portfolio.